Automatic Data Processing (NASDAQ:ADP) Hits New 1-Year High - Still a Buy?

Automatic Data Processing, Inc. (NASDAQ:ADP - Get Free Report)'s share price hit a new 52-week high during mid-day trading on Friday . The stock traded as high as $329.93 and last traded at $327.85, with a volume of 297386 shares. The stock had previously closed at $326.23.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on ADP shares. UBS Group raised their price target on shares of Automatic Data Processing from $318.00 to $324.00 and gave the stock a "neutral" rating in a report on Tuesday, March 4th. Stifel Nicolaus raised their target price on Automatic Data Processing to $305.00 and gave the stock a "buy" rating in a research note on Friday, May 2nd. Royal Bank of Canada reaffirmed a "sector perform" rating and set a $315.00 price target on shares of Automatic Data Processing in a research report on Thursday. Finally, TD Securities increased their price objective on Automatic Data Processing from $298.00 to $321.00 and gave the stock a "hold" rating in a report on Wednesday, May 21st. One research analyst has rated the stock with a sell rating, eight have given a hold rating and three have issued a buy rating to the company. Based on data from MarketBeat, Automatic Data Processing presently has an average rating of "Hold" and an average price target of $305.64.

Automatic Data Processing Price Performance

The firm has a 50-day simple moving average of $305.55 and a 200 day simple moving average of $302.43. The firm has a market cap of $132.61 billion, a PE ratio of 34.11, a price-to-earnings-growth ratio of 3.62 and a beta of 0.76. The company has a debt-to-equity ratio of 0.59, a current ratio of 1.00 and a quick ratio of 1.00.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings data on Wednesday, April 30th. The business services provider reported $3.06 EPS for the quarter, beating the consensus estimate of $2.97 by $0.09. The company had revenue of $5.55 billion for the quarter, compared to the consensus estimate of $5.49 billion. Automatic Data Processing had a net margin of 19.76% and a return on equity of 80.86%. Automatic Data Processing's revenue for the quarter was up 5.7% on a year-over-year basis. During the same period in the prior year, the firm posted $2.88 EPS. As a group, equities analysts expect that Automatic Data Processing, Inc. will post 9.93 EPS for the current year.

Automatic Data Processing Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 1st. Stockholders of record on Friday, June 13th will be given a dividend of $1.54 per share. This represents a $6.16 dividend on an annualized basis and a dividend yield of 1.89%. The ex-dividend date is Friday, June 13th. Automatic Data Processing's payout ratio is 63.05%.

Insider Transactions at Automatic Data Processing

In related news, VP Brian L. Michaud sold 1,500 shares of the firm's stock in a transaction on Tuesday, April 1st. The shares were sold at an average price of $305.38, for a total transaction of $458,070.00. Following the completion of the transaction, the vice president now directly owns 12,073 shares of the company's stock, valued at approximately $3,686,852.74. This trade represents a 11.05% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP Christopher D'ambrosio sold 473 shares of Automatic Data Processing stock in a transaction that occurred on Monday, March 10th. The stock was sold at an average price of $306.20, for a total value of $144,832.60. Following the completion of the sale, the vice president now directly owns 7,244 shares in the company, valued at approximately $2,218,112.80. The trade was a 6.13% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 2,451 shares of company stock valued at $743,024 over the last quarter. 0.21% of the stock is currently owned by company insiders.

Institutional Trading of Automatic Data Processing

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Bontempo Ohly Capital Mgmt LLC grew its position in Automatic Data Processing by 1,268.2% in the 1st quarter. Bontempo Ohly Capital Mgmt LLC now owns 15,775 shares of the business services provider's stock valued at $4,820,000 after acquiring an additional 14,622 shares during the last quarter. First Hawaiian Bank boosted its stake in shares of Automatic Data Processing by 0.9% during the first quarter. First Hawaiian Bank now owns 6,085 shares of the business services provider's stock valued at $1,859,000 after purchasing an additional 52 shares during the period. CBIZ Investment Advisory Services LLC grew its holdings in shares of Automatic Data Processing by 36.1% in the first quarter. CBIZ Investment Advisory Services LLC now owns 132 shares of the business services provider's stock worth $41,000 after purchasing an additional 35 shares during the last quarter. Modern Wealth Management LLC increased its stake in Automatic Data Processing by 17.5% in the 1st quarter. Modern Wealth Management LLC now owns 3,771 shares of the business services provider's stock worth $1,152,000 after buying an additional 562 shares during the period. Finally, Nova Wealth Management Inc. bought a new stake in Automatic Data Processing during the 1st quarter valued at about $45,000. Hedge funds and other institutional investors own 80.03% of the company's stock.

About Automatic Data Processing

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.

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